California Bans Public Officials From Issuing Memecoins as Newsom Signs New Crypto Laws

California Governor Gavin Newsom has signed legislation that bars state and local public officials from issuing memecoins, a move he tied to criticism of President Trump’s 2025 memecoin launch. Assembly Bill 2409 also stops digital asset service providers from offering certain memecoins issued by, or in partnership with, federal, state or local officials to California residents. The rules apply to tokens issued on or after January 1, 2027.

Enforcement Powers Under AB 2409

The measure adds the memecoin ban to the state’s Government Code, building on existing rules that already prohibit state officers and employees from taking on activity that conflicts with their duties. The state attorney general, district attorneys, city attorneys and county counsel can enforce the ban by filing civil actions. “No official should profit off their office,” Newsom said.

New Law Expands Crypto Crime Powers

Newsom also signed Senate Bill 1208, which widens California’s money laundering laws to cover illicit transactions made with digital assets. The law gives law enforcement broad authority to freeze, seize and forfeit digital assets linked to crimes.